4 ms·

Web startups are now rock bands, and YC is the record label.

mindcrime 16y ago
%cough% There is more to the startup world than just "web" startups, ya know. %cough% And YC don't limit themselves to just web startups, or even just to software companies, according to the FAQ. [1] [1]: http://ycombinator.com/faq.html http://ycombinator.com/faq.html
- tlb 16y ago
  Relatively few are pure web startups. They all have websites, of course, but most companies YC funds are in a particular business.
peteforde 16y ago
I know people are excited right now, but this is a terrible analogy. Rock bands don't need labels to succeed anymore, and the vast majority of record labels are deeply corrupt. They are consolidating to avoid bankruptcy, and throwing their CapEx funding into litigators and lobbyists so that they have someone to blame when in reality it was their greed and ignorance that brought their downfall. Does that sound like what's happening at Y-Combinator?
MichaelApproved 16y ago
I thought rock bands got shitty contract deals from record labels. These terms seem pretty fair and very unlike the recording industry.
- bryanlarsen 16y ago
  On the surface, YCombinator IS giving a shitty deal. 6% for a few thousand dollars? That's highway robbery. Except, of course, you're getting a lot more than money for your 6%. The difference is that YCombinator's promise are much less empty than that of a record labels. (I know, I deflected. Milner's terms are not shitty. It's YCombinator's that are, but only on the surface).
  - lsc 16y ago
    >On the surface, YCombinator IS giving a shitty deal. 6% for a few thousand dollars? That's highway robbery. I think for most startups that haven't executed much, that's an incredible deal. Your idea that your two buddies just threw together, and maybe a prototype, is worth $250,000. Really? (I know that some more mature companies have come to Ycombinator, companies likely worth more, but there are ycombinator companies that came fresh; so my assumption would be that the more mature companies would get a somewhat better deal than the brand-new companies. If that isn't the case, then it's possible that those more mature companies are getting the poor deal you are suggesting. But certainly for a fresh company, the ycombinator valuation, I think, is quite generous.) Maybe it's just because I'm in a more traditional market, where people value you based on revenue, or maybe it's because I'm not that good, but it's taken me years of work to reach that kind of a valuation. (on the upside, the valuations are somewhat, ah, less volatile in my industry. Assuming that my costs/revenues don't change sharply, the valuation of my company isn't going to change sharply. )
  - justin 16y ago
    When I first got into Y Combinator, our company with two founders straight out of college with no prior software engineering or startup experience and a prototype calendar demo was valued at 300k. We were ecstatic. That was the best deal I've ever been offered in my life.
    - realitygrill 16y ago
      I don't think I've ever heard the Kiko backstory (before justin.tv), and I hope you guys tell it sometime.
      - thetable 16y ago
        http://areallybadidea.com/34320844 http://areallybadidea.com/34320844
iuguy 16y ago
You just made me throw up in my mouth a little. But I do see your point.

%cough% There is more to the startup world than just "web" startups, ya know. %cough% And YC don't limit themselves to just web startups, or even just to software companies, according to the FAQ. [1] [1]: http://ycombinator.com/faq.html http://ycombinator.com/faq.html

tlb 16y ago
Relatively few are pure web startups. They all have websites, of course, but most companies YC funds are in a particular business.

peteforde 16y ago

I know people are excited right now, but this is a terrible analogy. Rock bands don't need labels to succeed anymore, and the vast majority of record labels are deeply corrupt. They are consolidating to avoid bankruptcy, and throwing their CapEx funding into litigators and lobbyists so that they have someone to blame when in reality it was their greed and ignorance that brought their downfall. Does that sound like what's happening at Y-Combinator?

MichaelApproved 16y ago

I thought rock bands got shitty contract deals from record labels. These terms seem pretty fair and very unlike the recording industry.

bryanlarsen 16y ago
On the surface, YCombinator IS giving a shitty deal. 6% for a few thousand dollars? That's highway robbery. Except, of course, you're getting a lot more than money for your 6%. The difference is that YCombinator's promise are much less empty than that of a record labels. (I know, I deflected. Milner's terms are not shitty. It's YCombinator's that are, but only on the surface).
- lsc 16y ago
  >On the surface, YCombinator IS giving a shitty deal. 6% for a few thousand dollars? That's highway robbery. I think for most startups that haven't executed much, that's an incredible deal. Your idea that your two buddies just threw together, and maybe a prototype, is worth $250,000. Really? (I know that some more mature companies have come to Ycombinator, companies likely worth more, but there are ycombinator companies that came fresh; so my assumption would be that the more mature companies would get a somewhat better deal than the brand-new companies. If that isn't the case, then it's possible that those more mature companies are getting the poor deal you are suggesting. But certainly for a fresh company, the ycombinator valuation, I think, is quite generous.) Maybe it's just because I'm in a more traditional market, where people value you based on revenue, or maybe it's because I'm not that good, but it's taken me years of work to reach that kind of a valuation. (on the upside, the valuations are somewhat, ah, less volatile in my industry. Assuming that my costs/revenues don't change sharply, the valuation of my company isn't going to change sharply. )
- justin 16y ago
  When I first got into Y Combinator, our company with two founders straight out of college with no prior software engineering or startup experience and a prototype calendar demo was valued at 300k. We were ecstatic. That was the best deal I've ever been offered in my life.
  - realitygrill 16y ago
    I don't think I've ever heard the Kiko backstory (before justin.tv), and I hope you guys tell it sometime.
    - thetable 16y ago
      http://areallybadidea.com/34320844 http://areallybadidea.com/34320844

iuguy 16y ago

You just made me throw up in my mouth a little. But I do see your point.